"Transform Your Crypto: Powerful Yield Strategies on THORChain"

Welcome to The Yield Quest Guide!

Weekly Chain Highlight: THORCHAIN

Purpose: Powering THORChain, RUNE enables seamless, decentralized asset swaps across major blockchains like BTC and ETH—no central control, no intermediaries.

Rune is a true bridge asset, eliminating the need for wrapped tokens. RUNE connects native assets across blockchains, creating new opportunities for earning yield without the complexities of synthetic assets.

Features of THORChain

• Native Asset Liquidity: Unlike wrapped tokens, users can swap native assets directly. This simplifies transactions and reduces risks tied to third-party custodians.

• Non-Custodial: Users retain control of their assets at all times.

• Dynamic Fees: Liquidity pools adjust fees based on market demand and pool depth, optimizing swap costs for users.

• Continuous Liquidity Pools: Support constant swaps across multiple chains without downtime.

• Savers Vaults: Deposit single-sided assets and earn risk-adjusted returns while maintaining full custody of your keys. Ideal for those looking for low-risk passive income in DeFi.

• Node operators: Stake RUNE to secure the network. This high collateral requirement incentivizes honest behavior and aligns their performance with network stability.

• Cross-chain swaps: Allow users to trade assets natively between chains like Bitcoin, Ethereum, and Binance Smart Chain. No need for centralized bridges or intermediaries.

Disadvantages of THORChain

1. Complexity for Beginners: The system’s advanced features and terminology can be intimidating for new users.

2. High Staking Requirements: Running a node requires significant RUNE collateral (~1 million RUNE), limiting participation to wealthy operators.

3. Limited Supported Chains: While major chains are integrated, THORChain does not yet support all ecosystems, like Layer 2 networks.

4. Security Risks: As a novel protocol, THORChain has faced exploits in the past. Although improvements have been made, risks remain inherent in cross-chain operations.

Tokenomics and Inflation

• Supply: RUNE has a maximum supply cap of 500 million tokens, limiting inflationary pressures. As of now, ~330 million tokens are in circulation.

• Deflationary Measures: The system burns RUNE during swaps, directly linking network activity to token supply reduction. This mechanism incentivizes usage and long-term holding.

• Node Staking: Two-thirds of the RUNE supply is locked into network staking, creating additional scarcity.

Recent Performance

• Over the past three months, RUNE has demonstrated significant growth, with its price increasing from $1.60 in September to $3.50 by late November 2024.

• TVL (Total Value Locked) on THORChain has steadily climbed, reaching approximately $400 million. This reflects growing confidence in its ecosystem.

Context and Statistics

• Daily Volume: THORChain processes over $20 million in daily swaps, emphasizing its growing role in DeFi liquidity .

• Active Users: The number of unique wallets interacting with THORChain has increased by 25% over the past quarter.

• Market Cap Ranking: RUNE ranks among the top 50 cryptocurrencies by market cap, reflecting its market recognition .

Quick-Start Guide: USDT-RUNE Yield Farming on THORChain

Interested in maximizing your yield with balanced risk and high growth potential? The USDT-RUNE pool on THORChain not only offers competitive returns but also provides eligibility for a potential $VULT token airdrop. Here’s how to get started, estimate your earnings, and understand the full picture of rewards and risks.

What You’ll Need

• ETH: Essential for both investing and covering Ethereum network transaction fees.

  • Quick Tip: ETH doubles as your “gas” fee on the Ethereum network, so keep some aside to avoid transaction delays. Remember, these fees vary and can be higher than other networks, especially during busy times. To stay prepared, check real-time fees on Etherscan before you start.

• Choose Your Wallet: Pick a wallet that fits how you prefer to interact with DeFi:

  • MetaMask Wallet: A trusted favorite, MetaMask connects seamlessly with DeFi platforms, making it a reliable choice for both browser and mobile use. (Need a setup guide? We’ve got you covered!)

  • Vultisig Wallet: Designed for flexibility, Vultisig lets you manage assets easily on both mobile and web. Perfect if you want secure access to your assets wherever you go.

These tools are selected to give you control and confidence, each step supporting your journey from setup to yield. When you’re equipped with the right tools, every move you make becomes smoother, giving you the edge you need to stay focused and informed.

Step-by-Step Instructions

1. Estimate Your Potential Yield

   • Go to the Thor Yield LP Calculator, select the USDT-RUNE pool, and enter the current price of RUNE along with your planned USDT amount. This will auto-calculate the RUNE needed and estimate your potential returns based on the current APR

     

   • Check the Latest APR: Visit the Thor Yield Pools page to find the latest APR for USDT-RUNE (e.g., 60.2%).

     

2. Swap ETH for USDT

   • Connect your wallet and Use THORSwap to convert ETH to Native USDT, setting aside Some ETH for gas fees. Swap ETH for USDT here.

3. Deposit USDT into the USDT-RUNE Pool

   • Go to the THORSwap Deposit Page, set slippage tolerance to 3% or lower, and confirm your deposit to USDT. THORChain will auto-balance your contribution between USDT and RUNE, eliminate the need for manuel RUNE purchases.

Track Your Position and Earnings

• To monitor your investment, go to the Thor Yield Account Page, enter your wallet address, and select Ethereum network. View your USDT-RUNE holdings, portfolio, and any staked assets.

  1. View Position: Displays all tokens currently held in your wallet.

  2. View Pooled Liquidity: Shows your pooled liquidity, such as the USDT-RUNE Pool. If no liquidity is added, an error may appear (normal if nothing is pooled).

  3. View Staking: Provides details on any THOR tokens you’ve staked. If no tokens are staked, it will show as “0.”

Withdraw Anytime

You can withdraw your assets from the pool anytime via the Positions tab on Thor Yield, giving you flexibility to adapt to market changes.

Yield Sources: Where Your Earnings Come From

In USDT-RUNE yield farming, your returns are powered by three main sources, making this pool ideal for a balanced, high-yield strategy:

1. Trading Fees: Earn a portion of fees generated from USDT-RUNE swaps, providing consistent returns.

2. Staking Rewards: THORChain offers additional staking rewards on RUNE, adding another layer to your earnings.

3. Protocol Incentives: THORChain periodically provides extra incentives to liquidity providers, enhancing your total yield over time.

These multiple income sources make the USDT-RUNE pool an attractive choice for those seeking diversified, stable returns.

Potential Yields

Current APY Range

• The USDT-RUNE pool offers a competitive APY of approximately 60.2%. This rate can fluctuate based on trading volume, market demand, and THORChain’s incentive programs. Keeping an eye on these conditions helps you make the most of your investment.

  • Note: The Thor Yield website can be a bit buggy and may occasionally display a negative number. No need to worry—it's a known issue, and the team is actively working on a fix!

    

Historical Performance

• The pool’s APY has been relatively stable, with occasional fluctuations due to RUNE’s price changes. USDT adds stability, while RUNE’s potential for growth offers higher yields than traditional stablecoin pools. As seen in the image below, the USDT-RUNE pool has been gaining a steady increase of volume for the past few months!

  

Risks to Consider

Every DeFi strategy has its risks. Here’s what to be aware of when investing in the USDT-RUNE pool:

1. Smart Contract Risk

   • Although THORChain undergoes regular audits, all DeFi protocols carry some risk of vulnerabilities. Trusting the platform’s security is essential for participating in this pool.

2. Market Volatility

   • RUNE’s price can fluctuate, impacting your returns. While USDT provides stability, those comfortable with moderate volatility may find this strategy more suitable.

3. Liquidity Risks

   • High liquidity typically reduces slippage risk, but during periods of extreme demand or low liquidity, slippage can still impact returns. Currently, liquidity remains strong, with most pools holding above $200 million. However, this could thin out in events like surges in chain usage.

4. Regulatory Risks

   • DeFi regulations are rapidly evolving. Be aware of potential changes in your region that may impact access to or availability of liquidity farming.

Pros and Cons

Bonus Guide: Unlocking Yield and Airdrop Potential with Vultisig’s $VULT Token

By participating in the USDT-RUNE pool, you’re not just earning yield—you’re positioning yourself to receive $VULT tokens from Vultisig, a platform redefining security and access in DeFi. Here’s what sets Vultisig apart and why this opportunity is one to consider:

1. Unparalleled Security Without Seed Phrases: Vultisig eliminates the vulnerabilities of traditional wallets by replacing risky seed phrases with “vault shares” spread across multiple devices. Imagine knowing that your assets are safeguarded without a single point of failure—offering next-level security and peace of mind.

2. 24/7 Access with Cold Storage-Level Protection: Vultisig combines the security of offline storage with the efficiency of an always-online wallet. You can access your assets any time, with the confidence that they’re shielded by advanced multi-layer security.

3. Multi-Chain Access Across 30+ Blockchains: Manage assets across chains effortlessly with Vultisig’s seamless integration. Whether you’re yield farming or engaging in governance, Vultisig’s compatibility ensures all your activity stays in one highly secure platform.

4. Your Voice in DeFi’s Future Through $VULT: $VULT tokens don’t just offer yield; they give you a voice in Vultisig’s direction. Use $VULT to vote on platform upgrades, staking options, and governance decisions—letting you actively shape DeFi’s evolving landscape.

Maximize Rewards with Double Benefits

Pooling RUNE in the USDT-RUNE pool enhances your yield and boosts your eligibility for $VULT tokens, blending high returns with governance perks in one strategy. For eligibility details and to see how to capture this opportunity, visit the Vultisig Airdrop Guide.

Yield Opportunities Spotlight

Top yield opportunities across different protocols, highlighting current APYs and associated risks.

THORChain Strategies: Opportunities, and Trade-Offs 

1. Savers Vaults: Passive Income, Low Risk

• How It Works: Deposit single assets like BTC, ETH, or BNB into Savers Vaults to earn yield from swap fees and block rewards—no asset wrapping or impermanent loss.

• Pros:

  • Low maintenance with stable, predictable returns.

  • Direct asset yield without needing to expose assets to RUNE.

• Cons:

  • Slip fees can cut into profits during volatile markets.

  • Ideal for long-term depositors to fully benefit from fees and yield.

2. Loan Loops: High Returns, High Risks

• How It Works: Borrow against assets and reinvest borrowed funds, creating leveraged “loan loops” to multiply returns.

• Pros:

  • High profit potential during bull markets.

  • Flexible structure with no forced liquidation, giving room to strategize.

• Cons:

  • Elevated risk in volatile markets—declines in collateral value impact returns.

  • Accumulated fees and collateral volatility can erode gains.

3. Node Provisioning: Active Role, High Rewards

• How It Works: Operates a THORNode with RUNE collateral to earn rewards for securing the network.

• Pros:

  • Significant rewards for committed, long-term participants.

  • Alignment with THORChain’s ecosystem growth, enhancing security and stability.

• Cons:

  • High upfront investment due to RUNE collateral requirements.

  • Technical expertise required for node management and upkeep.

4. Liquidity Pools: Balanced Risk, Steady Gains

• How It Works: Deposit assets into THORChain’s liquidity pools, with single-asset or dual-asset (RUNE) options, to earn from swap fees and rewards.

• Pros:

  • Diverse pools offer flexibility to manage risk across multiple assets.

  • Consistent returns from trading fees and rewards, ideal for long-term holders.

• Cons:

  • Exposure to impermanent loss in high-volatility periods.

  • Potentially higher fees during entry and exit in low-liquidity situations.

From the low-risk stability of Savers Vaults to high-stakes loan loops, THORChain provides strategies for every risk appetite, allowing you to align your goals with a dynamic, decentralized ecosystem.

Thor Chain News Roundup

• Yieldi.xyz (launching 2025): 

  • A new project by THORChain's co-founder, offering native L1 yield, cross-chain DeFi farming, single-hop routing, and continuous yield streaming—all simplified for seamless, high-yield DeFi management.

• 🚀 V50 Upgrade Ready for Review: 

  • The much-anticipated v0.50 upgrade for THORChain is now only days away from launch! This major release will introduce the app layer, enhanced support for historical queries, and other crucial improvements, including compatibility with thornode v3.0.0.

• 🔥 THORChain Reaches Node Capacity Milestone: 

  • The THORChain network now boasts 118 active nodes, just two short of its 120-node maximum! With 8 more nodes in the queue, competition is ramping up, driving demand for $RUNE. As integration with the Base network approaches, THORChain cements its status as a top player in decentralized, cross-chain swaps.

• 🚀 THORChain Now Live on Ledger Live! 

  • THORChain integration on Ledger Live is fully rolled out, enabling secure cross-chain swaps. In just two weeks, Ledger users generated nearly $18M in protocol volume for THORChain—an impressive start with massive growth potential ahead.

🚀 Final Stretch for THORChain 3.0.0 Release:
The THORChain team is in the final stages of preparing for the 3.0.0 upgrade. The remaining unresolved threads are expected to be finalized today or tomorrow, paving the way for the following timeline:

• Rebase and Flatten: Legacy migration PRs to be reviewed and merged by Wednesday, preparing for stagenet launch.

• Stagenet Launch: Scheduled for the week of December 2nd, ensuring rigorous testing of the update.

• Mainnet Release: Targeting the week of December 9th, delivering one of THORChain's most anticipated updates.

THORChain Supply Shock Thesis: Why $RUNE’s Scarcity Could Drive a Surge

THORChain is positioned for an imminent supply shock that could redefine $RUNE’s value. With 42% of $RUNE’s circulating supply locked in network functions like bonding and liquidity pools, the available supply is shrinking fast. As demand for THORChain’s cross-chain capabilities grows, this limited supply could lead to rapid price movement. For those who recognize this early, the combination of locked supply, real demand, and sustainable growth presents a rare opportunity.

Key Drivers of the Coming Supply Shock

• Locked Supply and Increasing Scarcity

  • 42% of $RUNE is already locked, effectively removing it from circulation. Every $RUNE allocated to bonding or liquidity further reduces the available supply, intensifying scarcity.

  • With each new participant in THORChain’s network, $RUNE becomes harder to acquire. Scarcity at this level signals that price pressure is not a matter of if, but when.

• Non-Inflationary, Revenue-Driven Model

  • THORChain generated $102,777 in fees in the last 24 hours from actual trading volume—not inflationary rewards. This revenue model attracts serious investors and liquidity providers by offering sustainable returns based on genuine demand.

  • THORChain’s non-inflationary approach means that rewards come from real activity, not token dilution. This structure is built to last, attracting long-term holders and strengthening $RUNE’s value over time.

• High Trading Volume as Proof of Adoption

  • THORChain’s $114.52 million in daily trading volume and $884.8 million weekly volume highlight real adoption. High trading volume signals a protocol being actively relied on by users, which drives demand for $RUNE as liquidity providers need it to earn rewards.

  • This isn’t speculative growth; it’s an indicator of solid, sustained demand. When demand meets limited supply, the market impact can be profound.

    

Why These Conditions Could Trigger a Supply Shock

1. Supply Shrinks as Demand Rises

• More $RUNE is locked in critical roles as network activity grows, reducing the circulating supply. In a market with limited availability, even a modest increase in demand can lead to disproportionate price movements.

• Imagine if $RUNE’s trading volume grows by 10% over the next month—each additional percentage point would further tighten the supply. This dynamic sets the stage for a sharp, upward price shift that early participants could benefit from.

2. A Self-Reinforcing Growth Cycle

• THORChain’s ecosystem creates a positive feedback loop: higher trading volumes lead to greater fees, attracting more liquidity providers, who in turn lock more $RUNE. This cycle strengthens the network and continuously drives up demand, creating an ongoing scarcity effect.

• This isn’t a one-time spike. Each new participant increases $RUNE’s scarcity, creating a compounding growth effect that amplifies the impact of each locked token.

3. Scarcity Creates Urgency

• With $RUNE becoming increasingly scarce, delaying a decision could mean missing out. In a market driven by supply and demand, opportunities like this are rare. Those who hesitate risk paying a premium once the full impact of THORChain’s supply shock is realized.

Indicators of an Impending Supply Shock

• 42% of $RUNE locked, reducing available supply dramatically.

• Revenue model based on real trading fees, offering sustainable, demand-driven growth.

• High trading volume, signaling active adoption and reinforcing demand.

These factors indicate a likely supply squeeze that could drive $RUNE’s value significantly higher. This thesis isn’t speculative—it’s backed by data and sustainable market mechanics.

THORChain’s Unique Position in DeFi

Unlike many DeFi projects that rely on inflationary rewards, THORChain’s revenue comes from real economic activity. Its model doesn’t need artificial incentives; $RUNE’s value grows as adoption increases. This structure rewards long-term holders, making $RUNE a stable and valuable asset in DeFi.

THORChain’s approach aligns with investors looking for stability. Its non-inflationary model protects $RUNE’s value, making it an asset with real potential for scarcity-driven growth.

A Rare Window of Opportunity

THORChain’s data points to a rare moment: rising demand, limited supply, and a self-reinforcing cycle of growth. For those who see the potential here, this may be a chance to secure a favorable position in $RUNE before the broader market catches on.

Why wait until it’s obvious to everyone? By the time the market fully recognizes THORChain’s potential, the opportunity for early participation will have passed. Now is the time to align with a project that’s redefining cross-chain DeFi and proving its resilience in the metrics.

The strategies and insights in this issue offer a roadmap for disciplined, high-yield DeFi opportunities. Staying informed and patient pays off in volatile markets. Focus on quality entry points and consistent monitoring to make the most of November’s opportunities.

With a balance of strategy, education, and market insights, TheYield Quest Team is here to support every step of your DeFi journey.

Disclaimer

All information provided in TheYield Quest is for educational purposes only and does not constitute financial advice. DeFi investments carry inherent risks and can lead to capital loss. Readers should do their own research and assess their risk tolerance before implementing any strategy.

Stay yield-savvy,
The Yield Quest Team